Macquarie keeps Underperform on Meesho, sees 30% downside to ₹125 target
Macquarie said Meesho’s low average order values and order frequency could constrain sustainable profitability. It forecasts 21% NMV CAGR from FY26 to FY29, but expects margins and NMV growth to trail broader market expectations.
Macquarie retained an Underperform rating on Meesho, citing low average order values and insufficient order frequency as barriers to sustainable profits. It forecasts 21% NMV CAGR through FY29 but sees Meesho’s valuation as unjustified, with Rs 125 target implying 30% downside.
Why this matters
Macquarie’s profitability concerns follow Meesho’s ₹202 crore Kirana Club acquisition to expand B2B retail and reports that Valmo logistics insourcing has stalled at about half of shipments.
Retail-company signals are accelerating, up 387067% QoQ.